Treasury Management: Tools and Techniques for Countering Financial RisksTreasury management activities are undertaken in all organizations. However, the increasing number of risks faced by organizations today has warranted many to develop a specialized treasury department to counteract them. Treasury Management describes the responsibilities the treasury manager will hold within such a department and the wide range of products and techniques now available to counter financials risks. These can often be highly technical-in an area where rapid response can be crucial, effective management tools are vital. Treasury Management provides a comprehensive overview of all the issues involved, including:-Sources of Finance;-Capital Structure;-Dividend Policy;-Management of interest rate risk;-Currency risk management and exchange risk relationships. Easy to read, understand and apply, Treasury Management enables these activities and more to be understood by finance specialists and non-financial managers, as well as students on CIMA, ICA and other finance and accounting courses. |
Contents
Sources of finance 1 | 10 |
Sources of finance 2 | 25 |
Capital structure | 43 |
Dividend policy | 67 |
Working capital management | 78 |
Management of interest rate risk | 105 |
Currency risks | 118 |
Exchange risk relationships | 132 |
Currency risk management | 144 |
| 163 | |
Common terms and phrases
after-tax amount annum assuming balance bank borrow calculated capital structure cash flows cent chapter company's convertible cost of capital cost of equity coupon rate creditors currency risk current assets customers debentures debtors discount dividend policy dollars earnings effect entity example exchange rate expected factors finance lease financing decision fixed foreign currency foreign exchange forward contract forward exchange forward market forward rate funds futures contract geared company hedging higher increase interest rate parity interest rate risk Interest rate swaps investment investors invoice issue lessor liquidity loan stock long-term market value offer operating cycle option ordinary shares overdraft overseas paid payable payments preference shares premium profits purchase reduced sell share price shareholders short-term small businesses sources of finance spot rate sterling subsidiary suppliers swap Tax shield techniques trading transaction costs transaction risk treasury management WACC weighted average cost